RPM International reported a record third quarter (Q3 fiscal 2026) with consolidated revenue of $1.608 billion, up about 9% from the prior year, driven by engineered solutions for high-performance buildings, acquisitions and favorable currency effects. Management highlighted strong earnings growth and improved margins across segments, underpinned by targeted growth investments, a robust cost-out program, and SG&A optimization. Management also underscored ongoing inflation pressures from raw materials, offset by price increases, and ongoing supply chain resilience aided by a center-led procurement operation. The company reaffirmed its outlook for low-to-high single-digit adjusted EBIT growth in the fourth quarter and remained focused on deleveraging cash flow through MAP initiatives, acquisition integration, and capital discipline.
In the near term, RPM is leveraging strategic acquisitions (Kalzip closed March 31, Nudura and Dryvit positioning, and Caleb for expansion in Europe/US) to broaden its system-based solutions in roofing, building envelope, and protective coatings. Management highlighted that two-thirds of RPM’s sales are in maintenance restoration and repair (M&R), a segment that historically outgrows underlying markets during volatility. The quarter featured notable operational improvements including Green Belt savings (>$50 million in lifetime value with $30 million in the current pipeline) and approximately $5 million of SG&A savings in the quarter, with an anticipated ~$20 million quarterly benefit in Q4 from ongoing optimization actions. The inflation backdrop remains the dominant near-term risk, with projected raw material inflation of 1-2% in Q4 and mid-to-high single-digit inflation in Q1 2027, with price realization and supply contracts helping offset higher costs.